The municipality was created in 1900 under the name Peña, which name it kept until 1962 when it was changed to Tamboril. The municipality contains the municipal district of Canca La Piedra, six rural sections, and 36 places (parajes). Since 2002, the mayor has been Francisco Álvarez, of the Partido Revolucionario Dominicano (PRD).

Tamboril is considered by many as the "World Capital of Cigars" housing more cigar factories and rollers than anywhere else in the world.[3] According to magazine Cigar Aficionado, 44% of the world's most traded cigars come from the Dominican Republic, the world’s largest producer of cigars[4], especially from the fertile lands of the Cibao capital, where 90% of the factories are located[5] The area has also been the largest supplier of cigars to the United States for decades[6], placing cigars as the 3rd largest export product in the country after gold and medical instruments[7].

Tamboril is also one of the major agricultural producers in the province, principal crops being plantains, cassava, and sweet potato, which are sold in the markets in Santiago. Cigarettes and chocolates are manufactured.

Due to the proximity to Santiago, where much of the population obtains health and education, the social services in Tamboril are abbreviated and consist of a health clinic, and two rural polyclinics. There is a state school and two libraries.